The VAT treatment of eBooks is understood to be challenged soon using the EU principal of fiscal neutrality; eBooks are subject to VAT whereas printed books are zero rated. As the European Commission has already ruled that France and Luxembourg cannot apply a reduced rate of VAT to eBooks and that they should be standard rated, it is unlikely that the challenge will result in eBooks becoming zero-rated. Fiscal neutrality could lead to zero-rating being withdrawn for hard copy books.